International Literature Review: Part I
Approaches and Interventions for Sickness Benefit and Invalids Benefit Clients
Employment and Health Interventions
Prepared by
Jude Miller Consulting
Prepared for
Centre for Social Research and Evaluation
Te Pokapū Rangahau Arotaki Hapori
March 2006
Contents
Purpose
EMPLOYMENT INTERVENTIONS
1Labour force participation of those with disabilities
2Return-to-work principles
Programme weaknesses
Good return-to-work practice
Early intervention
Identification and provision of effective assistance
Exporting practices
Predictive factors in work resumption
3Programme outcomes
4Programmes in practice
New Deal for Disabled People – UK
New Deal for Disabled People
Case Based Funding Trial – Australia
Work Incapacity and Reintegration Project (6 countries)
Client-led approaches
One-stop shops
Other return to work interventions
Key components of successful employment programmes
5Components of work rehabilitation
Job accommodations
Self-employment
Supported employment
Sheltered employment
Work trials, therapeutic work and voluntary work
Job coaching and mentoring
6Factors influencing successful interventions
7Involving employers in rehabilitation
Employer obligations
Meeting employer needs
8Employer incentives
Wage subsidies to employers
The Supported Wage System
Retention bonuses/incentives for employers
Tax deductions and tax credits
Job accommodations – employer attitudes
Other supports
Key success factors
9Summary
HEALTH INTERVENTIONS
1Health Improvement Programmes – UK
2Healthy Living Centre Programmes – UK
3Healthy People 2010 – US
4Health 2015 Programmes – Finland
5Primary Care Partnership Strategy – Australia
Purpose
This report presents the findings and conclusions from an international literature review which identifies programmes used by other government and social agencies to facilitate moving beneficiaries off incapacity and sickness benefits. The literature review has set out to identify key components and effective outcomes of these programmes. Part I focuses on Employment and Health Interventions for individualswith ill health or a disability.
EMPLOYMENT INTERVENTIONS
1Labour force participation of those with disabilities
People with disabilities are disproportionately represented in the unemployment statistics and among those not in the labour force.[1] The Australian Bureau of Statistics classifies those with different degrees of disability by labour force status. While the general population (with no disabilities) had a labour force participation rate of 80% in 1998, those with any disability only had a participation rate of 53.2%.
Labour force status by degree of core activity restriction, Australia 1998Profound / Severe / Moderate / Mild / All Disabilities / No Disabilities
Participation rate (%) / 18.9 / 40.2 / 46.3 / 56.5 / 53.2 / 80.1
Unemployment rate (%) / 7.4 / 11.6 / 13.1 / 9.3 / 11.5 / 7.8
Labour Force (000s) / 125.8 / 364.8 / 413.7 / 589.9 / 1474.6 / 10388.4
Source: ABS, Australia
Not surprisingly participation rates (those in the labour force as a percentage of those in the working age population) increase as the degree of severity of the disability decreases. The figures for unemployment rates are not as consistent as they are for participation in the labour force. The percentage of those unemployed increases as the degree of severity decreases. At first glance, this would seem counterintuitive. However, it could be explained by a higher proportion of those with profound disabilities being less likely than those with moderate disabilities to be participating in the labour force (Dockery 2001).
Rates for Canada[2] are slightly higher with 71% of those with mild disabilities participating compared to 56.5% in Australia. For those with moderate disabilities, 44.8% participated in Canada; slightly lower than Australia (46.3%). For severe disability, participation rates in Canada were significantly lower at 25% than in Australia (40.2%). We can assume the number of people with disabilities in the labour force of many OECD countries falls somewhere in the range between Australia and Canada.
Many governments are recognising the importance of participation in the labour force for those in receipt of social welfare benefits. This is being extended to those receiving sickness and incapacity benefits and employment interventions have been trialled in a number of countries to encourage movement back to work, where appropriate. Governments’ policy objectives when creating disability policy can be viewed broadly under two areas;
- equity and full participation
- cost effectiveness.
Embedded in law in many countries now is the right for those with disabilities to participate fully in society, with the aim of policy to remove as many barriers as possible to achieve this goal. While attempting to achieve this first goal, all government strategies should be as cost effective as possible (Perrin 1999).
Cost effectiveness implies efficient practice based upon sound return-to-work principles. A number of return-to-work principles from various programmes in various countries are found in the literature. These exemplify good practice in the rehabilitation of those with disabilities and (for some) their eventual reintegration into the labour market.
2Return-to-work principles
This chapter sets out a number of good return-to-work principles. Among them are well recognised principles of early intervention and identification and provision of effective assistance. Another principle is the structuring of health and cash benefits to encourage those with disabilities to return to work. This is discussed in Part III of this report. Despite principles of good practice, programme weaknesses exist in every country and are also discussed in this chapter.
Before identifying the components of a number of employment interventions in other countries, we have included a short discussion of programme outcomes, highlighting the problem of comparison between programmes. We also list predictive factors in work resumption. While a full list is inconclusive and depends on different programme emphasis and targets, two predictive factors that have consistently been associated with work resumption are age and proximity to the labour market. Once good practice is identified there are problems associated with simply exporting this good practice from one country to another; this is discussed below.
Programme weaknesses
The OECD finds that employment programmes overall do not have a large impact on employment rates for those with disabilities.Vocational rehabilitation (VR) and training is offered too seldom and often too late, with employers frequently excluded from the process. (OECD 2003b). The General Accounting Office (GAO) in the United States (US) echoes this and on examining the rehabilitation rate of workers on public disability rolls, has made a number of suggestions of how this may be improved.The suggestions for improvements are made in the context of research of private sector organisations in the USand other practices that have been successful in Sweden and Germany.The suggestions are also informed by lessons learned from these European experiences and by reviewing work resumption initiatives used in the Social Security Disability Insurance (DI) and Supplemental Security Income (SSI) programmes in the US (Sim 1999).
A number of programme weaknesses have been identified in the US public system which undoubtedly also exist in other government programmes. They include the following.
- Work capacity of DI and SSI beneficiaries may be understated. Medical conditions per se, are not good predictors of work capacity, with vocational, psychological, economic, environmental and motivational factors often considered as more important in determining work capacity.
- The process of determining disability may encourage work incapacity.The “all-or-nothing” decision gives an incentive to focus on inabilities and minimise abilities.In addition, a long application process to “prove” one’s disability can undermine motivation and the ability to return to work.
- The benefit structure can provide a disincentive to low wage work.The prospect of losing cash and health benefits themselves act as a disincentive to try rehabilitation and work, especially where wages are not expected to be high.Furthermore, many with disabilities have less time to work given the extra time necessary to perform even simple daily chores.
- Work incentives are ineffective in motivating people to work.These incentives are complex, difficult to understand and poorly implemented, and both employees and employers are often unaware of their existence.Also, work incentives do not overcome the expected fall in income for low wage jobs and loss of health care.
- VR plays a limited role in disability programmes.Access to these services through the State Disability Determination Service (DDS) referrals is limited.Lack of monitoring in the referral process and reimbursements for success are insufficient to motivate VR agencies to work with beneficiaries.There is lack of awareness of VR services and little encouragement to seek such services (GAO/HEHS-97-46).
Key points – Programme weaknesses
- Work capacity of those with disabilities is often understated with medical conditions being poor predictors of work capacity.
- Eligibility determination gives an incentive to focus on disabilities rather than abilities.
- The benefit structure, together with the fear of losing other benefits, can act as a disincentive to low wage work.
- Work incentives are ineffective in motivating people to work.
- Vocational rehabilitation plays limited role in disability programmes.
Good return-to-work practice
While these weaknesses differ slightly from those of other countries, they are generally echoed throughout the literature and are being addressed by each government. From the GAO research three return-to-work practices shown to be effectiveare:
- early intervention as soon as possible after a disabling event to promote return to work
- identification and provision of return to work assistance and management of cases to achieve return to work goals
- structuring health and cash benefits to encourage those with disabilities to return to work (Sim 1999).
The literature makes constant reference to the importance of early intervention in rehabilitating those after accident or injury. The first two points above are discussed in detail below while the third point is addressed throughout Part III of this report. Other international studies and reviews of literature (Fulton 1996; Foreman 2001; Williams and Westmoreland 2002) confirm the second and third point and add that:
- occupational rehabilitation and return-to-work strategies should be based in the workplace (Fulton 1996; Foreman 2001)
- corporate commitment from the top (supported by the organisational culture) is required for return-to-work strategies to be implemented efficiently (Fulton 1996)
- there should be communication between employer and employee at all stages of the rehabilitation and commitment by all parties concerned as to goals and interventions (Foreman 1996; OECD 2003a; Thornton 1998; Riddell 2002)
- commitment by all parties in the rehabilitation process (especially employers), with consensus on the rehabilitation goals and interventions and co-ordination of treatment, claims and rehabilitation activities(Foreman 2001).
Other important factors in successful return to work include: modified work as a choice for injured workers, workplace ergonomic intervention to determine what modifications are needed, a culture oriented towards people and safety to reduce injury claims and recognising that smaller workplaces do not always have the necessary resources to manage effective return to work for injured workers (Williams and Westmoreland 2002). In addition, studies find that not all clients will benefit from or need rehabilitation.
Early intervention
Much of the literature including OECD, 2003a asserts that the most effective measure against long term dependence on benefits is a strong focus on early intervention. The longer a person with disabilities remains out of the labour force the lower their chances of returning to work. When someone becomes disabled, implying immediately after a disabling event or at an early stage of a disease or chronic illness, the OECD recommends a process of intervention be initiated and tailored to individual client needs. The OECD suggests that vocational training and rehabilitation can be started at the same time as medical treatment, thus avoiding the worst case scenario of someone never returning to work. Countries such as Denmark, Switzerland, Portugal, France and Sweden have instituted a specific benefit just for the purpose of rehabilitation. The tight eligibility criteria ensure that permanence on this benefit is not easily possible.
When assisting the client to access rehabilitation services as early as possible, GAO recommends the following practices:
- addressing goals for return to work from the beginning of a disabling condition
- providing return to work services at the earliest appropriate time
- maintaining communication with workers that are in hospital or at home.
Medical and social insurance professionals favour this approach to discourage clients from focusing on their disability and encourage a focus towards rehabilitation. In Germany, the primary focus is on early rehabilitation and payment of benefits is made only after rehabilitation is considered. These rehabilitation authorities have published guidelines including definitive treatment, exercise recommendations and ways of persuading the client to apply for rehabilitation services. Sim (1999) notes however, that despite the principle in Germany of “rehabilitation before pension”, the services are not always available.
In addition, studies showed that despite the principle of early intervention benefits were received prior to any rehabilitation and many clients never received rehabilitation. The main cause cited was the fragmentation of agencies providing various services to this population (Sim 1999).
In Sweden, the emphasis was on placing more responsibility on employers and employees to reach the goal of early intervention, with employers required to implement an employee’srehabilitation plan within eight weeks of injury or illness. The process seems to work well, but is facilitated by three quarters of those employed working in large companies with doctors or physical therapists on site or companies having easy access to medical centres (Sim 1999).
In Norway, active sick leave is designed to prevent long term disability and focuses on two types of intervention: VR and adjustments in the workplace. Benefit payments can be stopped if the person does not participate in rehabilitation. In Belgiuma 14 day hold can be put on sickness benefits while the person attempts work without losing entitlement to the benefit. To resume the benefit, a doctor’s certificate is necessary to prove that worsening health is due to the initial injury. The OECD suggests that this gives the employee a strong incentive to try work as these periods count as part of the waiting period for the disability benefit application.
In other OECD countries, this time of “sickness absence” is lost, because only when the disability benefit is received, can VR begin. Any sense of early intervention is lost, as in many cases a person waits for up to a year before any disability services, including VR, begin (OECD 2003a).
Much of the research (Thornton 1998; Riddell 2002) points to good continued communication between employer and employee in the early stages of rehabilitation. This communication, in larger companies and private insurance companies, is often facilitated by case management. Injured workers favour this approach even though it is also a motivational tool used by case managers to encourage return to work. This clearly must come alongside any other initiatives (such as work accommodations, income supplements, etc.) put in place for the employee. This approach is more useful for those with shorter term disabilities (who may return to work within say three months). For those with longer term disabilities, other provisions are made in many countries including protection against dismissal on the grounds of disability.
Key points – Early intervention
- The longer a person with disabilities remains out of the labour force, the lower will be their chances of returning to work.
- Goals should be addressed for return to work from the beginning of a disabling condition.
- Return to work services should be provided at the earliest appropriate time.
- Some suggest that vocational training and rehabilitation can be started at the same time as medical treatment.
- Communication with workers should be maintained throughout rehabilitation.
- Some countries put more responsibility on employers and employees with a rehabilitation plan to be put in place within eight weeks.
Identification and provision of effective assistance
With the use of case management techniques, the GAO in the US recommends that the Social Security Association (SSA) provide for individual needs to be identified and appropriate assistance given. Rather than always assisting clients to return to their original place of work, transitional employment may be more appropriate. The GAO also recognises that those providing medical services should gain a full understanding of all the functions and roles of the worker within their work environment.
Germany’s rehabilitation policy is based upon the principle of the “individual assistance tailored to the actual needs and situation of each individual disabled or threatened by disability”. Within each benefit agency, a physician provides advice on the best course of action for the client. If the physician decides that rehabilitation is appropriate, a panel of doctors at the benefit insurance agency will decide whether this rehabilitation will take the form of medical rehabilitationor VR and will make a decision as to whether a pension is payable (Sim 1999).
Sweden’s approach is slightly different in that the onus is on social insurance officers to make rehabilitation decisions for the client. In this way case management techniques are put into practice with the co-ordination of rehabilitation specialists for medical and vocational services.
Both Sweden and Germanyprovide transitional work opportunities for those wishing to try work, but usually with reduced responsibilities or hours of work. However, these arrangements are mostly with existing employers. Germany, Sweden and private insurers in the US can often take advantage of the existing employer-employee relationship. However, in general in the US, it is unlikely that applying the same model will be successful, as those on disability rolls have usually been away from employment for some length of time. Over 40% of SSI applicants left their jobs more than 12 months prior to applying for a benefit and 27% did not know when they left their last job (Sim 1999). Nearly half of DI and SSI beneficiaries had not worked for six months before applying for the benefit.
In addition to transitional employment, the focus is very much on the individual needs with programmes tailored for each individual. Medical service providers in Germany and Sweden have a good understanding of the job functions of workers, with many physicians having been educated in rehabilitation. Contrast this to the comments from the UK New Deal for Disabled People (NDDP) evaluation of the Capability Statement prepared by doctors and used by Personal Advisors to make decisions of behalf of clients. Many of the doctors interviewed felt they lacked an appropriate level of occupational health experience and some questioned whether they were the most suitable health professional to be completing the form (Legard et al 2002). By law in Germany, a physician is “obliged to explain the importance of rehabilitation and explain the steps to be taken and the benefits that can be achieved” (Sim 1999).